Report: Disconnect between marketers and consumers

New report also finds nearly than half of Aussie marketers aren't regularly measuring their marketing return on investment

Despite marketers needing to become more data-driven, targeted, and analytical to prove their worth, a new report shows a significant disconnect between what Australian marketers are actually doing and what they should be doing.

According to the 2018 Salmat Marketing Report, only 58 per cent of Australian marketers are regularly measuring their ROI, and many are investing in the wrong channels to reach customers. Added to this, only 45 per cent will test different channels and select the best performing ones before investing.

The report states of the four top channels marketers used in the last 12 months, only one appeared in the top four channels consumers use when making purchasing decisions.

The four top channels marketers used were the brand’s website (50 per cent), social media (47 per cent), email marketing (46 per cent) and online display advertising (35 per cent). In contrast, consumers relied on referrals and recommendations from trusted friends and family to make purchasing decisions (72 per cent), followed by search engines (48 per cent) and a brand’s website (35 per cent).

The reports found marketers are investing heavily in social media (47 per cent), which has less influence on consumer purchasing decisions, and are under-investing in SEO (28 per cent). Further, two in five consumers said online reviews influences their purchase decisions, and when shopping in-store over one third (37 per cent) of consumers say they often go online to check consumer reviews about a product before buying.

“There is a clear disconnect between what channels marketers think consumers are engaging with, and what consumers are actually using,” said Salmat head of sales and marketing, Andrew Lane.

“Social media is a powerful tool for driving awareness and interest and is also very powerful in the loyalty and advocacy space. However, it does not appear to have as much direct influence on consumer purchase decisions compared to other channels."

In good news, it seems marketing budgets are increasing, however, 38 per cent of marketers still report lack of budget as their biggest challenge. Almost one in five will increase their budgets ‘significantly’ in 2018 and a further 44 per cent will increase budgets ‘a little.’

Another key finding is brand choice and price sensitivity has eroded brand loyalty, with two in five consumers stating they do not consider brands when shopping, with 65 per cent saying they would switch brands if a product is either on sale, or if they would receive an incentive for purchasing.

Free trials, samples and discounts are also highly influential on purchase consideration, with 48 per cent of consumers saying it’s important or very important for a brand to provide these incentives to maintain loyalty to a brand, and 60 per cent saying it’s important or very important to give discounts to returning customers.

“Advocacy is an important influence on consumers, yet marketers are finding it increasingly challenging to create customer loyalty,” Lane said.

“However, our research shows that consumers are still willing to advocate for brands, with respondents almost three times more likely to write a positive review than a negative one. With this in mind, it’s important for marketers to embrace reviews, especially as new players like Amazon enter our local market.

“Overall, marketers need a better understanding of the key marketing principles in order to reach potential new customers, re-engage prior customers to grow brand loyalty, and understand what channels to invest their budgets into to garner the strongest return on investment.". 

Other findings:

  • Price is the most important influencing factor on purchasing decisions (83 per cent), followed by quality of product (67 per cent) and free shipping (56 per cent). When it comes to maintaining customers’ brand loyalty, 85 per cent of consumers expect brands to offer good value for money and competitive pricing.
  • Half of consumers (49 per cent) prefer to purchase in-store compared to 32 per cent online.
  • On average, marketers will spend 41 per cent of their budgets online in 2018. The top channels that marketers will look to invest or use for the first time in 2018 are social media (15 per cent), email marketing (14 per cent), and SEM and mobile / SMS (13 per cent each).
  • 69 per cent of marketers are unable to name all of the 4 P's of marketing (price, product, place, promotion).


Follow CMO on Twitter: @CMOAustralia, take part in the CMO conversation on LinkedIn: CMO ANZ, join us on Facebook: https://www.facebook.com/CMOAustralia, or check us out on Google+:google.com/+CmoAu 

 

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Show Comments

Blog Posts

How service heterogeneity is impacting engagement

Marketers have long known the importance of standardising products to assure quality and consistency. For services, however, standardisation is much more complex.

Dr Chris Baumann

Associate professor, Macquarie University

Kindness matters in business: why the nice guys finish first

A recent 1000-page Royal Commission report on misconduct in Australia’s financial sector revealed hair-raising stories of excessive commissions, rampant mis-selling and charges levied on the dead. So how do you stop a bank from misleading its customers?

Nick Liddell

Director of Consulting, The Clearing

Myer vs. David Jones: Do cyborgs win?

As two of Australia’s stalwart brands in Myer and David Jones continue their respective journeys through troubled waters, it heralds yet another sign of the shifting business environment and shift towards an experience economy.

Tom Uhlhorn

Founder and strategy director, Tiny CX

nice article

meripadhai

5 things marketers need to do to get better in buy in when presenting

Read more

International business is closely related to marketing or marketing activities carried out by the company. According to Gitman and McDani...

Eko Prasetyo Utomo X

Salesforce: The age of the marketing campaign is over

Read more

Back in 1968 Holden began an appeal to customers who have an interest in competition. It did this with the introduction of the HK GTS 32...

Ben Tate

Marketing professor: For Holden, brand nostalgia ain’t what it used to be

Read more

Your blog post is really good and informative. Thanks for taking time to provide us this useful information with us.Auto wrapping uaeADF ...

Yes Machinery

Image intelligence:10 must-see infographics for marketers

Read more

A debt of gratitude is in order for sharing this marvelous information.I have taken in numerous things from your post

digitech Classes

Lumen CMO strives to make the brand synonymous with anti-ageism

Read more

Latest Podcast

More podcasts

Sign in